Financial Results for the Fiscal Year Ended October 31, 2021
[Japan GAAP] (Consolidated)
Date:

December 14, 2021

Company Name and Code: Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)
Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts: Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127
Date of Annual Shareholders Meeting: January 28, 2022
Date of Dividend Payment:

January 31, 2022

Date of Financial Statement: January 28, 2022
Preparation of Supplementary Explanatory Materials for Annual Operating Results: Yes
Briefing Session for Annual Operating Results: Yes (for analysts and institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Results for the Year Ended October 31, 2021
(1) Results of Operation (Consolidated)(Percent: change from the previous year)
Operating Income
Ordinary Income

Net Sales(Millions of Yen)

(Percent)(Millions of Yen)

Year Ended
45,13215.1
2,843
October 31, 2021
Year Ended
39,218-5.2
2,260
October 31, 2020
(Note) Comprehensive income
Fiscal year ended October 31, 2021: 2,666 million yen (109.0%)
Fiscal year ended October 31, 2020: 1,276 million yen (-12.8%)
Net Income Attributable to
Owners of the Parent(Millions of Yen)

(Percent)(Percent)(Millions of Yen)

(Percent)

25.8

2,905

26.6

-4.9

2,294

-3.8

Net Income
per Share

Fully Diluted Net
Income per
Share

Return on
EquityReturn on
AssetsReturn on
Sales

(Yen)

(Yen)

(Percent)(Percent)(Percent)

6.9

7.1

6.3

5.2

5.9

5.8

Year Ended
2,108
37.6
211.30
October 31, 2021
Year Ended
1,532
-2.3
153.56
October 31, 2020
(Reference) Equity in earnings (loss) of unconsolidated subsidiaries and affiliates
Fiscal year ended October 31, 2021: None
Fiscal year ended October 31, 2020: None
(2) Financial Condition (Consolidated)
Total Assets (A)Net Assets (B)Net Assets Ratio (B / A)

Net Assets per Share(Millions of Yen)

(Millions of Yen)

(Percent)

(Yen)

73.6

3,191.07

77.2

2,973.31

Year Ended
43,254
31,841
October 31, 2021
Year Ended
38,43829,668October 31, 2020
(Reference) Net assets
Fiscal year ended October 31, 2021: 31,841 million yen
Fiscal year ended October 31, 2020: 29,668 million yen

(3) Cash Flows (Consolidated)
Net Cash Provided(Used) by Operating
Activities
Year Ended
2,142
October 31, 2021
Year Ended
661
October 31, 2020

Net Cash Provided(Used) by Investing
Activities

Net Cash Provided(Used) by Financing
Activities(Millions of Yen)
Consolidated Cashand Cash Equivalent
as of Year-end

(977)

(494)

12,607

(485)

(468)

11,857

2. Dividend Status
First Quarter-

Year Ending October 31, 2020
Year Ending October 31, 2021
Year Ending October 31, 2022 (Prospect)

Dividend per Share (Yen)
SecondEnd ofThird Quarter
Quarter
Fiscal Year
23.50
24.50
00
25.
25.00
00
25.
25.00

Total
48.00
50.00
50.00

Total Dividend

Dividend Payout Ratio(Consolidated)

Dividend on Equity Ratio(Consolidated)(Millions of Yen)

(Percent)(Percent)

478
498

31.3
23.7
25.5

1.6
1.6

Year Ending October 31, 2020
Year Ending October 31, 2021
Year Ending October 31, 2021 (Prospect)

3. Forecast for the Year Ending October 31, 2021 (Consolidated)(Percent: Change from the previous year for the full business year and 6-month period)
Sales
Full Business Year

Operating Income(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

39,650

-

2,390

-16.0

2,400

-17.4

Net Income Attributable to
Owners of the Parent
Full Business Year

Ordinary Income

Net Income per Share(Millions of Yen)

(Percent)

(Yen)

1,960

-7.0

196.43Due to the application of the Accounting Standard for Revenue Recognition (Japanese GAAP Standard No. 29) andsuch from the beginning of the fiscal year ending October 31, 2022, the rate of change in sales for the fiscal year ended
October 31, 2021, before the application of the new standard, is not shown.

Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): Yes
Number of new subsidiaries: _1 (Company names): TOMOE Trading (Malaysia) Sdn. Bhd.
Number of eliminated subsidiaries: 1_(Company names): TOMOE Engineering (Shanghai) Co., Ltd.
(2) Changes in accounting principles, changes in accounting estimates, and retrospective restatements
1) Changes in accounting principles due to revision of accounting standard: None
2) Other changes in accounting principles than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(3) Number of outstanding shares (Common stock)1) Number of outstanding shares at year-end (including treasury stocks)
At October 31, 2021: 10,533,200 shares

At October 31, 2020: 10,533,200 shares

2) Number of treasury stocks at year-end
At October 31, 2021: 554,911 shares

At October 31, 2020: 554,861 shares

3) Number of average shares
At October 31, 2021: 9,978,307 shares

At October 31, 2020: 9,978,339 shares(Reference) Outline of Non-Consolidated Results of Operation for the Year Ended October 31, 2021
(1) Results of Operation (Non-Consolidated)(Percent: change from the previous year)
Operating Income
Ordinary Income

Net SalesYear Ended
October 31, 2021
Year Ended
October 31, 2020

(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

40,569

11.9

2,359

10.5

2,557

-6.7

36,243

-3.4

2,134

0.2

2,740

22.1

Net Income Attributable to
Owners of the Parent

Year Ended
October 31, 2021
Year Ended
October 31, 2020

Net Income
per Share

Fully Diluted Net
Income per
Share(Millions of Yen)

(Percent)

(Yen)

(Yen)

1,980

-2.1

198.50

-

2,022

31.9

202.74-(2) Financial Condition (Non-Consolidated)
Total Assets (A) Net Assets (B)(Millions of Yen)

(Millions of Yen)

Year Ended
40,71929,840
October 31, 2021
Year Ended
36,79028,200
October 31, 2020
(Reference) Net assets
Fiscal year ended October 31, 2021: 29,840 million yen
Fiscal year ended October 31, 2020: 28,200 million yen

Net Assets Ratio (B / A)

Net Assets per Share(Percent)

(Yen)

73.3

2,990.53

76.7

2,826.21

*This financial report is exempt from the review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and the assumptions that we believe are reasonable. Actual results could differ
materially due to various factors.
For the operating results forecast, refer to [(4) Outlook for the Next Fiscal Year] of [1. Overview of Operating Results,etc.] on page 5.

Table of Contents of Accompanying Documents
1. Overview of Operating Results………………………………………………………………………………………..2(1) Overview Concerning Current Operating Results………………………………………………………………....2(2) Overview Concerning Current Financial Condition………………………………………………..…………………3(3) Overview Concerning Current Cash Flow………………………………………………………..……………………3(4) Outlook for the Next Fiscal Year…………………………………………………………………..……………………5(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2021 and 2022………………………………….......6
2. Basic Approach to the Selection of Accounting Standards…………………………..………………………………6
3. Consolidated Financial Statements and Main Notes………………………………………………………………....7(1) Balance Sheets…………………………………………………………………………………………………...7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………….9
Consolidated Statements of Income………………………………………………………………………………....9
Consolidated Statements of Comprehensive Income…………………………………………………………... 10(3) Consolidated Statements of Changes in Shareholders' Equity……………………………………………………...11(4) Consolidated Statements of Cash Flows………………………………………………………………………...13(5) Notes for Consolidated Financial Statements…………………………………………………………………..15(Notes for premise of going concern)…………………………………………………………………………... 15(Change in presentation method)………………………………………………………………………………... 15(Additional information)……………………………………………………………………………………………... 15(Segment information)……………………………………………………………………………………………... 15(Per Share information)………………………………………………………….…………………………………18(Significant subsequent events)………………………………………………………………………………….18

1

1. Overview of Operating Results(1) Overview Concerning Current Operating Results
During the consolidated fiscal year under review, Japan’s economy got off to a good start, recovering rapidly fromthe COVID-19 pandemic, but growth turned negative at the beginning of the year. There was subsequently
recovery for a time, but of late personal consumption, capital expenditure, and export growth have once again
turned negative. Overseas, growth rates are currently slowing but are still solid for the Chinese and US
economies, and the European economy is also showing positive growth.
Given these circumstances, full-year net sales for the Tomoe Engineering Group were 45,132 million yen,
15.1% up compared with the previous fiscal year, reflecting increased net sales in both of the Machinery &Equipment Business and the Chemical Product Business. With respect to earnings during the period,
operating income was 2,843 million yen, 25.8% up from the previous consolidated fiscal year because of higher
income in the Chemical Products Business, while ordinary income came to 2,905 million yen, 26.6% up from theprevious consolidated fiscal year. Net income attributable to owners of the parent was 2,108 million yen, 37.6%
up from the previous consolidated fiscal year mainly reflecting a gain derived from liquidation of a consolidated
subsidiary in China.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery and Equipment Business, net sales for the current consolidated fiscal year were 12,322 million
yen, 6.7% up compared with the previous fiscal year. Despite sluggish growth in net sales of machinery,equipment and construction works for domestic public sector, net sales of components and repair services fordomestic public and private sectors and for overseas markets, in addition to machinery, equipment andconstruction works for domestic private sector and machinery for overseas markets, rose higher.
(Millions of Yen)
Productclassification

Machinery

Equipment andconstruction
works

Components
and repair
services

TOTAL

October, 2021

710

1,419

2,686

4,815

October, 2020

682

1,214

2,473

4,370

Difference

27

204

212

445

October, 2021

669

4

2,044

2,719

October, 2020

745

120

2,022

2,888

Difference

-75

-116

21

-169

October, 2021

2,167

0

2,619

4,787

Overseas

October, 2020

2,119

5

2,169

4,294

markets

Difference

47

-4

450

493

October, 2021

3,547

1,424

7,350

12,322October, 2020

3,547

1,340

6,665

11,553

0

84

685

769

Public sector

Private sector

TOTAL

DifferenceWith respect to earnings, operating income was 886 million yen, 4.3% down from the previous fiscal year, mainly
because of decline in profitability and higher selling costs.

2

(Chemical Products Business)
In the Chemical Products Business, net sales of resin and products for domestic and overseas markets in thesynthetic resin sector, materials for motor vehicles in the industrial materials and mineral products sector, and UV
curing resin, materials and additives for paint and ink applications in the fine chemical products sector all increased
reflecting rapid recovery of the automotive industry which was affected severely by the spread of novel
coronavirus COVID-19 infections during the second half of last year. As a result, consolidated net sales for the
fiscal year were 32,809 million yen, 18.6% up from the previous consolidated fiscal year.
(Millions of Yen)
October, 2020

October, 2021

Synthetic resin sector

6,425

8,430

2,005

Industrial materials sector

7,969

9,268

1,298

Chemical products sector

5,981

7,106

1,125

Advanced materials sector

3,284

3,644

359

Electronic materials sector

3,730

4,095

364

274

265

-9

27,66432,8095,144

Other products (foreign liquor)
Total

DifferenceWith respect to earnings, operating income was 1,957 million yen, 46.7% up from the previous fiscal year
because of increased gross-profit margin in all sectors.
(2) Overview Concerning Current Financial Condition
Current assets at the end of the consolidated fiscal year were 33,404 million yen, up 3,465 million from thebalance at the end of the previous consolidated fiscal year, reflecting increase in notes and accounts
receivable-trade, and in electronically recorded monetary claims, despite decrease in work in process, and in raw
materials and supplies. Noncurrent assets were 9,849 million yen, up 1,349 million yen from the balance at theend of the previous consolidated fiscal year, reflecting increase in buildings and structures, land, and investment
securities, and net defined benefit assets.
Liabilities were 11,412 million yen, increased by 2,642 million yen from the end of the previous consolidated fiscal
year, mainly reflected increase in notes and accounts payable-trade, and income taxes payable.
Net assets stood at 31,841 million yen, up 2,172 million yen from the end of the previous consolidated fiscal
year. This mainly reflected increase in retained earnings recorded under net income attributable to ownersof the parent reported at the current consolidated net income.
As a result of the above changes, the equity ratio at the end of the consolidated fiscal year decreased by 3.6
point to 73.6% from 77.2% at the end of the previous consolidated fiscal year.
(3) Overview Concerning Current Cash Flow
Cash and cash equivalents (“cash”) as of the end of the current consolidated fiscal year increased by 749 million
yen from the end of the previous consolidated fiscal year to 12,607 million yen, reflecting positive cash flow
provided by operating activities, despite expenditures for both investment and financing activities respectively.
The status of each consolidated cash flow and their factors during the current consolidated fiscal year are as
follows:3

(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities was 2,142 million yen. This reflected increase in notes and accounts
payable-trade by 1,287 million yen, and increase in income before income taxes by 2,992 million yen, reservation
for depreciation and amortization by 381 million yen, despite increase in notes and accounts receivable-trade by
2,330 million yen. Net cash provided was increased by 1,481 million yen as compared to 661 million yen in theprevious consolidated fiscal year.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used in investing activities was 977 million yen. This reflected purchase of property, plant andequipment of 1,003 million yen, despite 47 million yen cash provided from sales of investment securities. Net
cash used was increased by 491 million yen as compared to 485 million yen in the previous consolidated fiscal
year.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 494 million yen mainly for the payment of cash dividends in 493million yen.
Net cash used was increased by 25 million yen as compared to 468 million yen in the previous consolidated fiscal
year.
Trends in cash flow indices

Equity Ratio (Percent)
Equity Ratio Based on
Market Value (Percent)Year Ended
October 31,
2017

Year Ended
October 31,
2018

Year Ended
October 31,
2019

Year Ended
October 31,
2020

Year Ended
October 31,
2021

73.8

74.7

73.9

77.2

73.6

59.1

58.3

60.3

50.4

52.5

Debt-repayment to Cash
Flow Ratio (Years)

0.2

0.0

0.0

0.1

0.0

Interest Coverage Ratio(Percent)

28.3

68.9

114.8

93.0

884.0

Equity ratio: Net assets/ Total assets
Equity ratio based on market value: Market capitalization of shares / Total assets
Debt-repayment to cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow /Interest payment(Notes)1.

All indices are calculated on the basis of consolidated financial figures.

2.

Market capitalization is calculated based on the number of outstanding shares excluding treasury stock.

3.

Cash flow refers to net cash provided by (used in) operating activities.

4.

Interest-bearing debt refers to all debt reported on the consolidated balance sheet for which interest is
being paid.

5.

Beginning from the start of the Fiscal Year ended October 31, 2019, the Company has applied the Partial
Amendments to Accounting Standard for Tax Effect Accounting (Accounting Standards Board of Japan
Statement No. 28). Such Accounting Standard has been applied retroactively to the Financial Results
for the Fiscal Year ended October 31, 2018.

4

(4) Outlook for the Next Fiscal Year (November 1, 2021 - October 31, 2022)
In the consolidated fiscal year ending October 31, 2022, the Japan’s economy recovered slowly as the spread ofnovel coronavirus COVID-19 infections was suppressed by progress with vaccination, but the outlook remained
opaque due to uncertain factors, namely reduced automobile production because of global semiconductor
shortages, electrical power regulatory issues in China, sudden foreign exchange rate fluctuations, soaring
resource prices, and logistical blockages. Meanwhile overseas, growth rates in the Chinese and US economies
slowed but were solid, with the outlook for gradual recovery in the European economy as well. However, in Europe
and the US the renewed spread of novel coronavirus COVID-19 infections and the appearance of new variants
made optimism difficult.
The fiscal year ended October 31, 2022 was the final year of Tomoe Engineering’s 12th medium-term businessplan, Change for The Future (November 2019-October 2022), and the company moved forward with various
undertakings aimed at reaching targets for the final fiscal year and generating further growth. Among which, withworking to expand overseas operations an important issue, in the Machinery & Equipment Business Tomoe
Engineering worked to increase sales to China and Southeast Asia, and to increase sales by further developing
markets in North, Central, and South America, and projected consolidated sales are 12,800 million yen. The
company expects operating profit to decline 12.1% compared with the same period the previous year to 780
million yen due to lower high-margin component repair sales and higher SG&A expense. Tomoe Engineeringplans to work on reforming production in order to lower costs, and on research & development, including into
binary power generation equipment and AI control systems, to contribute to future growth. In the Chemical
Products Business, following up on the local Thai unit, the local units that the company established in 2021 in
Vietnam and Malaysia entered full-fledged operation, further expanding expansion in Southeast Asia. Tomoe
Engineering pursued business expansion aimed at further product development in Europe, Russia, and Africa, forprojected consolidated sales of 26,850 million yen. The company expects operating profit to decline 17.7%
compared with the same period the previous year to 1,610 million yen due to higher SG&A expense relating to thedevelopment of operations in order to contribute to future growth (consolidated sales are based on a new revenue
recognition standard).
As a result of these efforts, for the entire Tomoe Engineering Group in the consolidated fiscal year ending October 31,
2022, we project net sales of 39,650 million-yen, operating income to decrease by 16.0% to 2,390 million yen, ordinary
income to decrease by 17.4% to 2,400 million yen, and net income attributable to the shareholders of the parent
company to decrease by 7.0% to 1,960 million yen reflecting gain on sales of company dormitory planned forextraordinary profit.
The operating results forecasts for the next period described above are based on information available to theCompany at the time the forecasts were prepared and assumptions judged to be reasonable. Actual operating
results might differ from these forecasts depending upon changes in domestic and international financial andeconomic conditions, the supply and demand situation, various risk factors and other uncertainties.

5(5) Basic Policy for Profit Sharing and Dividends for Fiscal 2021 and 2022
As its basic policy, the Tomoe Engineering Group will “implement appropriate, stable dividends by seeking toincrease internal reserves to reinforce our financial position and corporate strength, and by considering
consolidated operating results, the group’s medium-term business strategy and other factors in a comprehensive
manner.
Based on the above policy, we plan to pay a dividend of 25.0 yen per share increased by 0.5 yen per share fromthe previous consolidated fiscal year (annual dividend of 50.0 yen per share increased by 2.0 yen per share fromthe previous consolidated fiscal year) at the end of the consolidated fiscal year ending on October 31, 2021,
considering of our financial position and operating results for this fiscal year and the outlook in future.
The outlook for business conditions is uncertain for the fiscal year ending October 31, 2022, and with the outlook
for higher expenditure designed to greater future growth, we expect recurring profit to decline compared with thefiscal year ended October 31, 2021. A one-off factor should be extraordinary gains from the disposal of company
dormitories, but we are making no change in the interest of maintaining stable dividends.

2. Basic Approach to the Selection of Accounting Standards
At the present time the Tomoe Engineering Group has adopted Japan GAAP, based on factors such ascomparability between firms, and the Group’s policy concerning the application of IFRS will be to respond whilereferring to outside trends and other considerations.

63. Consolidated Financial Statements and Main Notes(1) Balance Sheets(Thousands of Yen)
Year Ended October 31, 2020

Year Ended October 31, 2021

Cash and Deposits

11,857,553

12,607,490

Notes and Accounts Receivable-Trade

10,400,639

11,694,334

Electronically Recorded Monetary Claims

2,131,545

3,279,411

Merchandise and Finished Goods

2,605,708

3,589,851

Work in Process

1,684,070

1,290,848

Raw Materials and Supplies

1,066,944

743,778

Others

253,335

263,549

Allowance for Doubtful Accounts
Total Current Assets-60,767-64,455

29,939,029

33,404,810

4,722,504

5,236,376

Accumulated Depreciation-2,026,932-2,183,281

Buildings and Structures, Net

2,695,571

3,053,095

Machinery, Equipment and Vehicles

3,826,069

3,992,687-3,360,809-3,555,668

465,260

437,019

1,930,580

2,302,076－

16,246

1,071,431

1,097,469

Accumulated Depreciation-959,930-995,989

Others, Net

111,500

101,480

5,202,912

5,909,917

128,516

81,073

Investment Securities

1,227,085

1,425,438

Guarantee Deposits

398,405402,260

1,473,503

1,956,842

AssetsCurrent Assets

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land
Construction in progress
OthersTotal Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets
Deferred Tax Assets
Others12,143

13,50879,02782,045

Allowance for Doubtful Accounts-22,291-21,892

Total Investments and Other Assets

3,167,873

3,858,203

Total Noncurrent Assets

8,499,302

9,849,194

Total Assets

38,438,331

43,254,004

7

(Thousands of Yen)
Year Ended October 31, 2020

Year Ended October 31, 2021

Notes and Accounts Payable-Trade3,004,198

4,208,592

Electronically Recorded Monetary Debt

2,150,419

2,306,052

Accounts Payable-Others

621,692

685,729

Income Taxes Payable

179,968

775,198

Advances Received

201,993308,942

Provision for Bonuses

1,231,975

1,406,031

Provision for Directors' Bonuses

61,55580,979Allowance for Product Warranty

236,423

363,270

Others397,235

536,079

8,085,462

10,670,876

Liabilities and Net Assets
Liabilities
Current Liabilities

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

71,21967,772

Deferred Tax Liabilities

607,445

668,441

Total Noncurrent Liabilities

684,124

741,673

Total Liabilities

8,769,587

11,412,550

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

27,107,252

28,721,695

Treasury Stock-363,977-364,081

Total Shareholders’ Equity

29,287,895

30,902,234

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

307,456

450,885-1,566

7,785

Foreign Currency Translation Adjustment

92,854

213,842

Total Adjustment on Net Defined Benefit-17,896266,705

Total Accumulated Other Comprehensive Income

380,848939,220

Total Net Assets

29,668,743

31,841,454

Total Liabilities and Net Assets

38,438,331

43,254,004

Net Assets
Shareholders’ Equity8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Thousands of Yen)
Year Ended October 31, 2020
Net Sales

39,218,418

Year Ended October 31, 2021
45,132,616

Cost of Sales

30,079,424

35,017,477

Gross Profit

9,138,994

10,115,138

Selling, General and Administrative Expenses

6,878,358

7,271,456

Operating Income

2,260,635

2,843,681

Interest income

2,976

2,526

Dividends Income

33,50533,951

Rent Income

7,171

7,407

－

5,775

35,04034,646

78,69484,308Interest Expenses

7,114

2,423

Commission Paid

9,008

9,000

Sales Discount

6,093

6,423

Foreign Exchange Loss

16,418－Others

5,826

4,921

Total Non-Operating Expenses

44,46022,769Ordinary Income

2,294,869

2,905,220

Profit on Sales of Investment Securities

921

23,927

Gain on Liquidation of Affiliated Company－

62,996921

86,924

Loss on Valuation of Investment Securities

2,160

－

Total Extraordinary Losses

2,160

－

2,293,630

2,992,144

Income Taxes-Current

617,829

1,002,048

Income Taxes-Deferred

143,496-118,272

Total Income Taxes

761,325

883,775

Net Income
Net Income Attributable to
Owners of the Parent

1,532,304

2,108,369

1,532,304

2,108,369

Non-Operating Income

Foreign Exchange Gain
OthersTotal Non-Operating Income
Non-Operating Expenses

Extraordinary Profits

Total Extraordinary Profits
Extraordinary Losses

Income before Income Taxes

9

Consolidated Statements of Comprehensive Income(Thousands of Yen)
Year Ended October 31,

Year Ended October 31,

2020

2021
1,532,304

2,108,369-131,902

143,429

Deferred Gains or Losses on Hedges-3,521

9,352

Foreign Currency Translation Adjustment

9,572

120,987

Adjustment on Net Defined Benefit-130,220284,602

Total Other Comprehensive Income-256,072

558,371

1,276,231

2,666,741

1,276,231

2,666,741

Net Income
Other Comprehensive Income
Valuation Difference on Available-for-sale Securities

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of the
Parent10

(3) Consolidated Statements of Changes in Shareholders' Equity
Previous Consolidated Fiscal Year (Year Ended October 31, 2020)(Thousands of Yen)
Shareholders' Equity
CommonStock
Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CapitalSurplus1,061,210

Retained
Earnings

1,483,410

26,043,930

Issued Shares
Reacquired-363,977

Total Net
Assets28,224,573-468,981-468,981

1,532,304

1,532,304－－－

1,063,322－

1,063,322

1,061,210

1,483,410

27,107,252-363,977

29,287,895

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-for-sale
Securities

Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributableto Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year439,359

Deferred
Gains or
Losses on
Hedges1,954

Foreign
Currency
Translation
Adjustment

83,282

Total Net
DefinedBenefit112,324

Total Other
Comprehensiv
e Income

636,920

Total Net
Assets28,861,494-468,981
1,532,304－-131,902-3,521

9,572-130,220-256,072-256,072-131,902-3,521

9,572-130,220-256,072

807,249

307,456-1,56692,854-17,896

380,848

29,668,743

11

Current Consolidated Fiscal Year (Year Ended October 31, 2021)(Thousands of Yen)
Shareholders' Equity
CommonStock
Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CapitalSurplus1,061,210

Retained
Earnings

1,483,410

27,107,252

Issued Shares
Reacquired-363,977

Total Net
Assets29,287,895-493,926-493,926

2,108,369

2,108,369
-104

-104

－

－

1,614,443-104

1,614,338

1,061,210

1,483,410

28,721,695-364,081

30,902,234

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-for-sale
Securities

Surplus during Previous
Fiscal Year
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributableto Owners of the Parent
Acquisition of Treasury
Stock
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year

307,456

Deferred
Gains or
Losses on
Hedges-1,566

Foreign
Currency
Translation
Adjustment

92,854

Total Net
DefinedBenefit-17,896

Total Other
Comprehensiv
e Income

380,848

Total Net
Assets

29,668,743-493,926
2,108,369-104

143,429

9,352

120,987

284,602558,371558,371

143,429

9,352

120,987

284,602558,371

2,172,710

450,885

7,785

213,842

266,705

939,220

31,841,454

12

(4) Consolidated Statements of Cash Flows(Thousands of Yen)
Year EndedYear Ended

October 31, 2020

October 31, 2021

Net Cash Provided by (Used in) Operating Activities
2,293,630

2,992,144

Depreciation and Amortization

360,890

381,053

Increase (Decrease) in Provision for Bonuses

71,377

173,525

Increase (Decrease) in Provision for Directors' Bonuses(11,072)

19,424

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Net Defined Benefit Liability(76,927)

126,846

8,010(3,446)

Decrease (Increase ) in Net Defined Benefit Asset(46,687)(46,703)

Increase (Decrease) in Allowance for Doubtful Accounts(2,109)(186)

Interests and Dividends Income(36,481)(36,478)

Interest Expenses

7,114

2,423

Foreign Exchange Losses (Gains)

27,7694,283

Loss (Gain) on Sales of Investment Securities(23,927)

Loss (Gain) on Valuation of Investment Securities

(921)
2,160

Loss (Gain) on Liquidation of Affiliated Company－(62,996)(211,807)(2,330,535)

80,873(212,962)

Increase (Decrease) in Notes and Accounts Payable-Trade(817,191)

1,287,448

Increase (Decrease) in Accounts Payable-Others(81,663)

47,728

Increase (Decrease) in Advances Received

104,809

Increase (Decrease) in Unpaid Consumption Tax(375,375)
162,500

Others, Net

142,081

28,6091,496,169

2,548,406

36,571

36,483(7,114)(863,839)(2,423)(439,615)

661,786

2,142,851

Income before Income Taxes and Minority Interests

Decrease (Increase) in Notes and Accounts
Receivable-Trade
Decrease (Increase) in Inventories

Sub totalInterests and Dividends Income Received
Interest Expenses Paid
Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities

13－

97,343(Thousands of Yen)
Year EndedYear Ended

October 31, 2020

October 31, 2021

Net Cash Provided by (Used in) Investment Activities
Disbursement to Time Deposits(8,000,000)(8,000,000)

Proceeds from Withdrawal of Time Deposits

8,000,000

8,000,000

Purchase of Property, Plant and Equipment(1,003,970)

Proceeds from Sales of Property, Plant and Equipment(373,384)－

Purchase of Intangible Fixed Assets(44,980)(6,883)Purchase of Investment Securities(21,991)(19,752)

Proceeds from Sales of Investment Securities

1,674

47,889Payments of Loans Receivable(1,640)(4,615)

Collection of Loans Receivable

2,805

2,510

Guarantee Deposits (Increase)(48,952)(1,278)Others, Net
Net Cash Provided by (Used in) Investment Activities

9,265

546

(342)

(485,922)(977,177)

－

(104)

(468,981)(493,926)(468,981)(494,030)

2,690

78,294

Net Cash Provided by (Used in) Financing Activities
Acquisition of Treasury Stock
Cash Dividends Paid
Net Cash Provided by (Used in) Financing Activities
Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period(290,427)

749,936

12,147,981

11,857,553

Cash and Cash Equivalents at End of This Fiscal Year

11,857,553

12,607,490

14

(5) Notes for Consolidated Financial Statements(Notes for premise of going concern)
There are no pertinent matters to report.
(Change in presentation method)In our financial results for the fiscal year ended October 31, 2020, Insurance Refund was shown as a separate item of
Non-Operating Income, but due to a decline in its monetary significance, for the fiscal year ended October 31, 2021
Insurance Refund is included in the Others item. In order to reflect this change in method of presentation, we havereorganized the consolidated financial statements for the fiscal year ended October 31, 2020.
As a result, in the consolidated income statement for the fiscal year ended October 31, 2020, the Insurance Refund of
4,427 thousand of yen previously shown in Non-Operating Income has been folded into the Others item of 30,613
thousand of yen, such that the Others item is now shown as 35,040 thousand of yen.
(Additional information)(Accounting estimates based on the widespread of novel coronavirus infections)
The widespread of novel coronavirus infections has had a broad impact on the economy and corporate businessactivities, and has affected the Tomoe Engineering Group’s business activities as well.
Based on the assumption that circumstances will return to normal gradually beginning from the next consolidated
fiscal year, we have prepared accounting estimates of fixed asset impairment and the potential for recovery ofdeferred tax assets.
Because the impact of the novel coronavirus pandemic on economic activity is highly uncertain, changes in the above
assumptions might affect the Tomoe Engineering Group’s financial position and business results in the next
consolidated fiscal year.
(Segment information)
1. Summary of reporting segments
TOMOE Engineering Co., Ltd. has established two operational headquarters. These operational headquarters aredeveloping their business activities by planning comprehensive domestic and overseas strategies for the respective
manufactured and commercial products they handle.
We therefore have assumed these two businesses, referred to as the “Machinery & Equipment Business” and the“Chemical Products Business”, as our company reporting segments. The Machinery & Equipment Business mainly
manufactures and sells centrifuge decanters, and the Chemical Products Business mainly manufactures, stocks andsells chemical industry products.
The Company’s reporting segments are those units of the Company’s for which discrete financial information isavailable and for which the Board of Directors regularly conducts a review for the purpose of making decisions about
resources to be allocated to the segments and assess the segments' performance.
2. Method for calculating amounts of net sales, income or loss, assets, liabilities and other items for each reporting
segment
The accounting methods for reporting segments are identical to the accounting methods adopted for preparation of
the consolidated financial statements.

15

3. Information concerning the amount of net sales, income or loss, assets, liabilities and other items for each reporting
segment
Previous Consolidated Fiscal Year (Year Ended October 31, 2020)(Thousands of Yen)
Amount ofConsolidated
Adjustment
Financial
Note 1
Statements
Reported
AmountReporting segment
Machinery &Equipment
Business

Chemical
Products
Business

Total

11,553,455

27,664,962

39,218,418－

39,218,418

－

－

－

－

－

11,553,455

27,664,962

39,218,418－

39,218,418

Segment Income

926,426

1,334,208

2,260,635－

2,260,635

Segment Assets

10,172,315

15,180,376

25,352,692

13,085,639

38,438,331

263,644

97,246360,890－360,890259,379

44,254

303,633－

303,633

Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total

Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets(Notes)1. The adjustment amount for segment assets is the assets of the entire company that cannot be allocated to eachreporting segment, and is mainly idle operating funds (cash on hand and in banks), long-term investments(investment securities) and assets acquired in relation to a district redevelopment project.
2. The total amount for segment income agrees with the operating income reported on the Consolidated Statement of
Income.
Current Consolidated Fiscal Year (Year Ended October 31, 2021)(Thousands of Yen)
Amount ofConsolidated
Adjustment
Financial
Note 1
Statements
Reported
AmountReporting segment
Machinery &Equipment
Business

Chemical
Products
Business

Total

12,322,687

32,809,928

45,132,616－

45,132,616

－

－

－

－

－

12,322,687

32,809,928

45,132,616－

45,132,616

Segment Income

886,670

1,957,011

2,843,681－

2,843,681

Segment Assets

9,754,839

19,465,236

29,220,075

14,033,929

43,254,004

295,162

85,891

381,053－

381,053496,977

525,946

1,022,924－

1,022,924

Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total

Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets(Notes)1. The adjustment amount for segment assets is the assets of the entire company that cannot be allocated to eachreporting segment, and is mainly idle operating funds (cash on hand and in banks), long-term investments(investment securities) and assets acquired in relation to a district redevelopment project.
2. The total amount for segment income agrees with the operating income reported on the Consolidated Statement of
Income.

16

(Related information)
Previous Consolidated Fiscal Year (Year Ended October 31, 2020)
1. Information by product and service
The Company has omitted a description of information by product and service because this same information isdisclosed in segment information.
2. Regional Information
1. Net Sales
Japan
31,438,039(Thousands of Yen)Asia
7,051,510

Others728,868

Total
39,218,418(Note)Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan4,815,210

Asia
257,574(Thousands of Yen)
Others130,127

Total
5,202,912

3. Main Customer Information
The Company has omitted a description of sales to outside customers because there are no customers to which sales
account for more than 10% of the net sales reported in the Consolidated Statements of Income.
Current Consolidated Fiscal Year (Year Ended October 31, 2021)
1. Information by product and service
The Company has omitted a description of information by product and service because this same information isdisclosed in segment information.
2. Regional Information
1. Net Sales
Japan
35,324,321(Thousands of Yen)Asia
8,852,085

Others956,209

Total
45,132,616(Note) Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan

Asia

5,535,095

249,165(Thousands of Yen)
OthersTotal

125,655

5,909,917

3. Main Customer Information
The Company has omitted a description of sales to outside customers because there are no customers to which sales
account for more than 10% of the net sales reported in the Consolidated Statements of Income.
(Information concerning impairment losses on fixed assets by reporting segment)
There are no pertinent matters to report.
(Information concerning amortization of goodwill and unamortized balances by reporting segment)
There are no pertinent matters to report.
(Information concerning gain on negative goodwill by reporting segment)
There are no pertinent matters to report.

17

(Per Share Information)
Year Ended
October 31, 2020
¥2,973.31

Net Asset per ShareYear Ended
October 31, 2021
¥3,191.07

Net Income per Share¥153.56¥211.30(Note 1) Income per share for this fiscal year after adjustment of the residual securities is not presented as there are noresidual securities.
(Note 2) Calculation basis for net income per share are as follows:Year Ended
October 31, 2020

Year Ended
October 31, 2021

Net Income for this Fiscal Year (thousands of yen)

1,532,304

2,108,369

Net Income for Common Stock (thousands of yen)

1,532,304

2,108,369

Average number of Common Stock during the Fiscal Year9,978,339

9,978,307(Note3) Calculation basis for net asset per share are as follows:Year Ended
October 31, 2020
Total for Net Asset in Consolidated Balance Sheet(thousands of yen)
Net Asset for Common Stock (thousands of yen)
Number of Common Stock used for calculation of Net Assets
per Share (share)(Significant subsequent events)
None

18

Year Ended
October 31, 2021

29,668,743

31,841,454

29,668,743

31,841,454

9,978,339

9,978,289